Many people have paid close attention to the Bitcoin ecosystem recently, but there is a certain threshold for this.
1. What are Bitcoin Ordinals and BRC20?
- Ordinals is an NFT protocol based on the BTC network that aims to assign a unique identity to every satoshis (sat).
- After the birth of the Ordinals protocol, users can engrave information on the Bitcoin chain, including text/pictures/audio/video, thereby creating NFTs on the Bitcoin chain.
- BRC-20 is the token standard on the Bitcoin chain. Ethereum ERC-20 is used for comparison to better understand, and the Ordinal JSON protocol is used to mint and transfer tokens.
- The BRC-20 token standard was created by Twitter domodata user. It is currently only an experimental interchangeable token standard, and the token itself has little value.
2. History and development of Bitcoin Ordinals and BRC20:
- With the emergence of BRC20, more and more BRC 20 tokens have appeared on the chain, such as ORDI, MEME, PEPE, etc.
- According to UniSat data, more than 1,400 tokens have been successfully deployed, and more than 6,000 BRC20 are being minted.
3. Technical principles of Bitcoin Ordinals and BRC20:
- The total number of Bitcoins is 21 million, and one coin can be subdivided into 100 million satoshis (satoshi is sat, the smallest unit of Bitcoin), totaling 2100 trillion satoshis.
- What the Ordinals protocol does is to write information to each Satoshi, such as text, pictures, audio and video, etc.
- Since the inscription is created directly on the Bitcoin blockchain and cannot be tampered with, there is no project party. As long as the Bitcoin does not disappear, the inscription will not disappear;
4. How to use Bitcoin Ordinals and BRC20:
- Requires Bitcoin, wallet, and operating platform, which can be obtained by deploying Deploy, minting mint, and purchasing.
- For example, on the operating platform unisat.io, players can install the platform wallet UniSat Wallet directly in the browser, create the wallet Taproot, and record the mnemonic phrase.
- After the wallet is created, transfer BTC to the UniSat Wallet wallet through the CEX platform and perform related operations.
5. Advantages and Disadvantages of Bitcoin Ordinals and BRC20:
- At present, brc20 has a certain popularity, but no one knows how long it will last.
- Optimistic people believe that the Ordinals protocol will truly make Bitcoin NFT an on-chain asset and will rewrite the future NFT market.
- Bearish people believe that BRC20 is just a temporary buzz with no specific applications and is just a meme. After the buzz, it will soon become quiet.
6. The future development of Bitcoin Ordinals and BRC20:
- Brc20 is currently extremely popular, and the gas fee for transactions remains high.
- In addition, many brc20s have already increased hundreds of times. If the excitement stops, now they are just the takers, and there is a danger of being trapped.
- But every time there are new experiments on the chain, no one knows the final results. #crypto2023 #BTC #ETH
